The official business definition of Cost of Processing is the total cost associated with the processing of a transaction or service. This includes the cost of labor, materials, and overhead. It is important to note that the cost of processing is not just the cost of the actual processing itself, but also includes the cost of related activities such as customer service, accounting, and marketing. The cost of processing can be divided into two categories: direct costs and indirect costs. Direct costs are those associated with the actual processing of the transaction or service, such as labor, materials, and overhead. Indirect costs are those associated with related activities, such as customer service, accounting, and marketing. By understanding the cost of processing, businesses can better manage their resources and make more informed decisions about how to allocate their resources to ensure maximum efficiency and profitability.